Teslahas had achallenging yearso far, and to boost the sales of one of its latestModel Ytrims, the automaker is offering new purchase incentives.
For well-qualified buyers, Tesla is now offering 1.99 percent APR financing or $0 due at signing for theLong Range All-Wheel Drive(AWD) trim of its new Model Y.
This is the first time a deal like this has been available for the new Model Y in the US, coming just a month after the AWD trim first became available to order.
Tesla Model Y (2025)
Tesla is offering 1.99 percent financing for new Model Y Long Range All-Wheel Drive orders.
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The new Model Y is eligible for a federal tax credit
A 15 percent down payment is required for 1.99 percent APR financing
The Long Range AWD trim of the new Model Y starts at $48,990. Luckily, it is eligible for a federal tax credit in the US amounting to $7,500, which helps bring the cost of the electric SUV down to $41,490. By taking advantage of Tesla’s new 1.99 percent APR incentive, you could save a couple of thousand dollars in the long run. Alternatively, you’re able to choose the $0 due at signing option. However, this comes with a higher APR percentage, which may not be worth it.
To qualify for the 1.99 percent APR financing promotional rate, US buyers must make a down payment of at least 15 percent. According to Tesla, the $7,500 federal tax credit can be applied toward the down payment on the car. Delivery estimates for the Long Range AWD Model Y are one to three weeks. Full terms and conditions can be found onTesla’s website.
It’s interesting to see Tesla launch a financial incentive for this Model Y trim so soon after its release. AsElectreknotes, this could indicate soft demand for the new Model Y in the US. In 2024, the Model Y was the best-selling electric vehicle in the US, and if Tesla’sfirst quarter resultsare any indication, the company is struggling to sell vehicles at a pace it once maintained.
If the Long Range AWD Model Y doesn’t interest you, Tesla has just launched a more affordable trim: the Long Range Rear-Wheel Drive (RWD) Model Y. It starts at $44,990, or $37,490, after considering the $7,500 federal tax credit. However, there are no incentives or promotional rates available for the new trim yet.
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